**Title: Understanding Supplier Influence in Industry**Firms must typically purchase inputs from suppliers to produce output. What effect might suppliers have on an industry? Consider the following scenarios:- **A. Specialized Inputs**: If an input is specialized, then the supplier is likely to have the bargaining power to limit a firm’s profits. - **B. Market Structure Influence**: Suppliers cannot affect output markets, although an output market with only a few firms is likely to have the bargaining power to limit a supplier's profits.- **C. Multiple Suppliers**: If many firms can supply an input, then suppliers are likely to have the bargaining power to limit a firm’s profits. - **D. Limited Supply Firms**: If only a few firms can supply an input, then markets will likely experience shortages because firms are unable to produce sufficient output. - **E. Price Taker Scenario**: If suppliers are price takers, then a firm will likely be a price taker with no ability to raise price.This information helps in understanding the dynamics and interdependencies between suppliers and firms in a market, affecting pricing, availability, and competition.

Given that firms purchase inputs from suppliers, suppliers have power to influence the market. If…

Firms must typically purchase inputs from suppliers to produce output. What effect might suppliers have on an industry? O A. If an input is specialized, then the supplier is likely to have the bargaining power to limit a firm's profits. O B. Suppliers cannot affect output markets, although an output market with only a few firms is likely to have the bargaining power to limit a supplier's profits. OC. If many firms can supply an input, then suppliers are likely to have the bargaining power to limit a firm's profits. O D. If only a few firms can supply an input, then markets will likely experience shortages because firms are unable to produce sufficient output. O E. If suppliers are price takers, then a firm will likely be a price taker with no ability to raise price.

Firms must typically purchase inputs from suppliers to produce output. What effect might suppliers have on an industry? O A. If an input is specialized, then the supplier is likely to have the bargaining power to limit a firm's profits. O B. Suppliers cannot affect output markets, although an output market with only a few firms is likely to have the bargaining power to limit a supplier's profits. OC. If many firms can supply an input, then suppliers are likely to have the bargaining power to limit a firm's profits. O D. If only a few firms can supply an input, then markets will likely experience shortages because firms are unable to produce sufficient output. O E. If suppliers are price takers, then a firm will likely be a price taker with no ability to raise price.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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